Version 15.8.10 New Features

Payroll

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The Australian financial / tax year starts from 1 July and runs through to 30 June of the following year and it is common each year for there to be updates that need to be applied from 1 July for the new financial year to various indexed figures and tax withheld schedules.

For 2024-2025, most of the updates will be applied by an automated feature via the Tax Table Update Button on the Welcome Page of Preceda, while some updates will need to be applied manually by the customer.

The Tax Table Update Button will be available from Friday, 21 June 2024. Note that the Administrator and Security Officer must be set to Y, via the Define Users screen, for the User Profile(s) who will need to have this action available.

The updates to the Tax Table and Superannuation starting on July 1, 2024, are as follows:

  • Tax Table updates for the Government's Stage 3 tax cuts, delivering tax relief to individual taxpayers

  • The ETP Thresholds Cap increases to $245,000. There is no change to Whole of Income cap, and this remains at $180,000 as it is a non-indexed figure.

  • The death benefit termination payment ETP cap increases to $245,000.

  • The Lump Sum D / Redundancy Threshold increases to $12,524 plus $6,264 for each completed year of service.

  • SGC / Superannuation Percentage increases to 11.5%. The superannuation guarantee legislation has already been set for super payments to increase 0.5% each year until reaching 12% in 2025.

  • SGC Maximum Contributions Base (MCB) increases to $65,070 per quarter.

  • The Concessional Super Cap increases to $30,000, however this cap is not managed by payroll. This is an employee responsibility.

Please note that updates to Superannuation are not included in the automated feature via the Welcome Page's Tax Table Update Button. These updates will need to be handled manually. Please see below for links to Community Articles covering the steps required to perform this update:

 

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From 1 July 2024, through their Back Pocket Boost plan, the Nationals have a goal of delivering meaningful tax reductions to provide cost of living relief to New Zealanders, who have seen no change in personal income tax rates and thresholds since 2010.

The Nationals have proposed the following adjustments to tax thresholds:

Existing Threshold Proposed Threshold Threshold Rate
$14,000 $15,000 17.50%
$48,000 $53,500 30%
$70,000 $78,100 33%

Note: The $180,000 income tax threshold will remain in place. The Nationals have ruled out removing the 39% top tax rate in their first term due to fiscal and economic pressures. However, higher-income earners will benefit from their plan as they, like other taxpayers, will pay less tax on their earnings under $78,100.

National also propose to increase eligibility for the Independent Earner Tax Credit (IETC) to compensate for the impact of inflation, by extending the upper limit of eligibility from $48,000 to $70,000, with abatement of the payment starting from $66,000. The lower limit of IETC eligibility will remain the same at $24,000.

Dayforce have prepared for this proposed update to the Tax Tables, and once confirmed following the May Budget we will provide Preceda users with the ability to control the timing of the updates they will need to apply from July 1, 2024. This will be handled by enabling the standard Welcome Page Legislative Update Button feature towards the end of June 2024.

Once this feature is enabled:

  • Users who have "Security Officer" set to Y will see the message on the Welcome Page.

  • Only Users who also have "Administrator" set to Y will be able to click the button

When the button is clicked, the following updates will be actioned:

  • Update Tax Tables with new thresholds.

  • Update Preceda Variable *PP_TAXTABLEUPD with details of date, time and User who clicked the button

The message and button will then stop being displayed on the Welcome Page.

Note that the current financial year reference stored in Preceda Variable *PP_TAXYEAR will not be updated as part of this action.

A Community Article will be published with more details, once the planned adjustments to tax thresholds are confirmed.

 

Transition to Dayforce

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The Tax Information NZ template has been updated in Dayforce Activate to include fields for the employee’s ESCT (Employer Superannuation Contributions Tax) information, which is available in Preceda on the YTD Gross, Tax & Net window.

For this update, the following are implemented:

  • The existing Dayforce Data Load Extractor view now includes three (3) new fields:

    • ESCT Rate - this is sourced from the YTD gross, Tax & Net field ESCT Tax Rate multiplied by 100. If there is no value in this field, the default value will be "System Calculated".

    • ESCT Effective Start Date - this refers to the Start Date of current financial year.

    • ESCT Effective End Date - this refers to the End Date of current financial year.

  • The existing Extractor Report has been to be updated to include the 3 new fields.

 

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To reduce the time for Implementation Consultants working with a customer in transition from Preceda to Dayforce, some Extractor Reports have been introduced to all AU and NZ databases, based on the new Extractor views. This will provide Consultants with quick and easy access to running these Data Load & Parallel Run extracts when required, with the generated files formatted and named ready for Dayforce Activate to consume.

Please note that these reports will only be available once the Dayforce Transition Setup Utility has been run by the Preceda Application Services team. If you have any questions in relation to gaining access to these reports, please contact your Customer Success Manager.

New Extractor Reports for Go-Live

New Extractor Reports have been introduced to all AU and NZ databases for each of the below listed Dayforce Data Loads Extractor views

  • Earning Election Data

  • Deduction Election Data

  • Earning YTD Data

  • Deduction YTD Data

  • Tax YTD Data

  • Time Away from Work Data

Each of the above Extractor Reports will simply contain all fields from the relevant view. As with other Extractor Reports deployed across multiple customers, the Owner & Modified By information for these reports is set to 'SYSTEM'. These Extractor Reports are all configured with "Output To" set to 'Export', and the "File Type" set to ‘Comma Separated Values (*.csv)'.

 

New Extractor Reports for Parallel Run

A new Extractor Report has been introduced to all AU & NZ databases, which includes all the views related to Legacy payroll data. The main report is based on the Legacy Company Totals view, and includes a runtime prompt on the Payrun Header ID field for easy selection of the historical Preceda payrun used in the parallel payrun testing in Dayforce.

A sub-report has been added for each of the below listed Dayforce Data Loads Extractor views:

  • Legacy Employee Earning

  • Legacy Employee Deduction

  • Legacy Employee Net Pay

  • Legacy Employee Tax

  • Quick Entry Import

     

    • These sub-reports are all linked to the Legacy Company Totals main report using the Payrun Header ID field.

    • Display of the Payrun Header ID field in the main report, and all sub reports is hidden, to ensure that this information is not included in the results.